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Thread: US economic recession benefits China?

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[quote=GUEST39148,264597]In general terms, an economic recession is defined as two consecutive quarters of declining growth, or no growth in real terms.  A recession is almost always accompanied by a dramatic decline in consumer spending and a rise in unemployment.  Has the U.S. reached this point?  Opinions vary, as some say yes, while others are not quite saying no, but that the indicators are certainly there.  The U.S. housing market is in a terrible slump, that is for sure, and the housing market is a key indicator.

It has been said that when the U.S. economy catches a cold, other economies catch pneumonia.  This may have been true in the past, but with a much larger world wide or global economy, few if any countries are so dependent upon the U.S. that a recession there will trigger a likewise recession in theirs.  Will an American recession benefit China?  Yes, possibly.  By this I mean that if the goal of the economic planners here in China is to slowdown the rate of growth, a recession in a major trading partner will serve to make attaining this goal a bit easier.  Is this a good thing?  Not necessarily, since a great deal of the "money" that has been made here of late is speculative money, and not the result of increased production.  Or, put another way, fortunes have been made here in the past few years, but these fortunes are fuelled by a cash transfer within the stock market, with no real increase in real economic production.

An American recession will 1) make waging a war all the more costly; 2) make their ability to meet their debt obligations much more difficult to meet; 3) lead to another round of a devaluation of the U.S. dollar.  This is altogether very bad news for the average, middle class American taxpayer.[/quote]

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